Ziggy's ditched tour stirs acquisition rumour

Telstra has cancelled the North American and European arms of an overseas investor roadshow, sparking rumours the telecommunications company is preparing to unveil an acquisition.

A spokesman for Telstra last night confirmed to The Age that chief executive Ziggy Switkowski had cancelled plans to travel to London for a series of investor briefings in March.

It is unclear if Dr Switkowski was also to speak at some telecommunications/investment conferences in North America.

The spokesman said Telstra chief financial officer John Stanhope would fly to CSFB's investment conference in Hong Kong next month to address Asian institutional investors, but that Dr Switkowski would stay home.

It is believed that he is eager to remain in Australia,, deciding to speak to North American and European investors by audio hook-up instead.

Analysts said yesterday the annual roadshow, which typically takes in Europe, North America and Asia, could have been put on hold to allow Dr Switkowski and chairman Bob Mansfield to bring forward a board meeting to discuss last week's leaking of its rebuffed plan to merge its directories business with John Fairfax Holdings, owner of The Age.

One analyst, who declined to be named, said: "There is something afoot at Telstra; that's what this action suggests to me." He said the roadshow could have been sidelined because Dr Switkowski was eager to deal with the leak.

Speculation has been rife this week that Telstra is looking at an overseas acquisition. Some analysts believe that, if a deal is close, this may be behind the roadshow cancellation.